Qwest’s Strength in Broadband Drives Increase in Fourth-Quarter Profits

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Qwest’s Strength in Broadband Drives Increase in Fourth-Quarter Profits

6:05 am on February 14, 2008 | Category: Business, Telecom Services, Telephone, Internet, Corporate

America’s third-largest telecom provider, Qwest Communications International, reported an 89% leap in fourth-quarter profits on Tuesday, due to growth in high-speed internet subscribers, as well as a significant one-time tax gain.

Qwest generated profits of $366 million, or $0.20/share, for the three-month period ending on December 31, up from $194 million, or $0.10/share, in the fourth quarter of 2006. Excluding the $106 million income tax benefit, the company’s profits came in at $0.14/share, roughly in line with analysts’ expectations.

Revenue declined to $3.44 billion, from $3.49 billion a year earlier, mostly due to an ongoing decline in fixed-line telephone customers.

Profits were bolstered by the net addition of 95,000 high-speed internet customers, which caused broadband revenues to grow 8.7% from the same period last year.

Bank of America analyst, David Bardan, said that the growth in broadband customers was “relatively in line” with his target, despite the current economic slowdown. “We see no signs yet of material business weakness that would dramatically alter the company’s cash-flow story,” he commented.